Pre - Market Report (31st March 2020)

U.S Markets closed 3% higher Yesterday. Asian Markets are also Mostly in Green.
Trump has cautioned U.S Citizens that if the lockdown rules are not being followed Strictly then in coming 2 weeks the deaths in U.S could surge to more than a lakh.
Lockdown has been extended to 30th April in some parts of U.S .
Indian Institute of Medical Research Yesterday in their Press Conference mentioned that they have not obtained any Proofs of Community Transmission yet ( Stage 3) .
It would be a Tremendous job if we Eradicate the spread of Corona Virus at Stage 2 itself.
Indian Government also Clarified Yesterday that they are not planning to Extend the lockdown beyond 21 day period.
There is not a lot of Incremental Negative news related to Corona Virus all over the World except in U.S
Cases in U.S have surged to 1.4 lakh.
Observing Yesterdays Market I can say that we are in the last round of selling now.
In First round of selling all the low Quality stocks fall by 60-70% but Bluechip Stocks fall by 8-10% this was Witnessed in the Initial Week of March.
In the Second round of selling Everything falls & in the last round of selling Bluechip Stocks fall by 30-40%.
NBFC Stocks have taken a big hit Yesterday. Stocks like Bajaj Finance & HDFC ltd were down more than 10% each .
SGX Nifty is up by 2% in the Pre - Open .
India VIX has been cooling off from it's record high levels of 82-85 range and now it's near 71-72.
This shows that Panic has been reducing in our Markets from last week.
As Tomorrow is the Weekly Expiry & Premiums are quite high on both sides ( CE & PE) . Option Buyers should exercise a lot of Caution while buying Weekly Options.
Yesterday, even when Markets fell Put Options were not rising proportionately to the Market fall. This was because there were very low Volumes being Traded in the Markets & sentiment is not excessively bearish now as it was before.
Futures continue to trade at a Discount on both Nifty & Bank Nifty.
Currently I am not expecting large moves in the Market as we are in a Consolidating phase.
Yesterday the Mid cap & small cap index were down 5% each. So Broader markets were much weaker when compared to Index.
Unless there is any more Incremental Negative news I do not expect Nifty to breach 7500.
As Mentioned Yesterday Bank Nifty will continue to Underperform & all types of rallies should be sold into. HDFC Bank leading the Underperformance and was down 8% Yesterday.
Nifty is likely to remain Rangebound today in the range of 8000-8700 & exploring trading Opportunities at the Boundaries is Advisable.
Sold 7400 PE & 9500 CE Yesterday on Nifty. ( Weekly Expiry).
Sold 16000 PE & 23000 CE on Bank Nifty Yesterday.(Weekly Expiry).
Explore Shorting Opportunities in Quality Bluechip which have not Participated in the Current Market fall. Returns are more Favourable on this front.

Comments

Reversal from 20k (24th July 2023)

1. U.S Markets closed lower on Friday. 2. Dow Jones was flat. 3. Nasdaq was the underperformer. 4. Gift Nifty is down 30-40 Points. 5. Asian markets are mostly lower as well. 6. Friday the Nifty opened with a gap down of 200 points. 7. Within the next 10 minutes , Nifty recovered 100 points. 8. Bulls expected recovery is on the cards but Nifty started to Crack. 9. Bank Nifty was holding up Nifty for most of the while. 10. It couldn't be able to provide much of a support and Bank nifty also began to correct. 11. The issue now is market has had vertical rallies. 12. One way quick rallies so now the downfall will also be vertical. 13. When markets go up quick , they come down quicker. 14. Infy dragged the mood and also HUL didn't post extraordinary results so it was also a laggard. 15. Banks tried hard to hold the markets but couldn't. 16. Over the weekend , AU Bank and icici bank reported very good numbers. 17. These banks have already rallied a lot before results

U.S Markets firing 🔥 (8th Feb 2024)

1. U.S Markets closed higher Yesterday. 2. U.S Markets are trading at their all time high on daily basis. 3. S&P 500 is now at 5k. 4. This has been a stellar show across the globe. 5. We have an Election Year in the U.S as well. 6. As you might not be aware more than 45% U.S citizens invest in stock market. 7. So for the Government to have a good impression and to gain vote Bank stock market have to be kept higher. 8. Government and FED will do what all they can to keep pro markets 9. Bank Nifty showed signs of comeback yesterday but the rally failed again. 10. Largecap stocks continue to underperform whereas Mid & Small caps continue to soar new highs. 11. Once a trend develops in the markets it can go on for a long time than expected. 12. Interestingly , I was doing some number crunching yesterday and found that small & mid cap companies have given better than expected results than large caps. 13. Most of the large caps have disappointed. 14. Star of the pack

Finale Expiry Week (19th May 2023)

1. U.S Markets closed higher yesterday. 2 Right now , Dow Futures are slightly higher. 3. SGX Nifty is higher by 40-50 Points. 4. Asian Markets are higher. 5. Yesterday was a strange trading day. 6. I say strange because SGX Nifty pre market was showing 30-40 point gap up opening. 7. Nifty opened around 120 points higher. 8. This was a huge gap up out of nowhere. 9. So naturally it was an excellent shorting opportunity. 10. The Volatility again yesterday was super high. 11. Nifty tested the previous day low of 18100 once again yesterday. 12. There was an intense selling during the last 30 minutes yesterday. 13. Surprisingly, INDIA VIX hasn't inched higher in last 3 days of extreme sell off. 14. This shows that there is lesser panic in the markets right now. 15. Currently, we have a good risk - reward trade opening up on Nifty. 16. 18100 looks as a double bottom being made on Nifty for the short term. 17. There are fever indications for the same 18. One could g

All you Need to know about Stock Markets

Search This Blog